Ugh, he really isn't in touch with realities of life, is he? I think it is beyond time for him to learn some realities of life. Like: Do not bite a hand that feeds you! (Or whose car you drive or in whose house you live in.)
I at times wonder if this kind of attitude has something to do with having a difficult child sibling. Our easy child's get to be golden children way too easy and they spend their time comparing themselves to our difficult children and of course come to immature conclusion, that they are so much better than their troubled siblings. And at times we may praise them just for the relieve they are not difficult children. That may turn them to think way too highly about themselves. My easy child, thus far, has not convinced himself that he would be quite that much better or smarter than husband or I (just your normal teenage child amount) but he is very sure in his conviction that he is better in every way than his brother and is very shaken up every time his brother does something he can't achieve. Not very attractive attribute in him and I do hope he matures out of it. Unfortunately I'm not too sure about it.